Ghana has signed a $260 million agreement with the World Bank to address inefficiencies in its energy sector, including $1.2 billion in annual losses. The deal, part of the Energy Sector Recovery Programme, includes a $250 million credit for metering procurement and a $10 million grant for clean cooking, under the World Bank’s Programme for Results (PforR) initiative.
The agreement aims to procure one million meters through competitive bidding and close the metering gap, improving revenue collection efficiency for the Electricity Company of Ghana (ECG). The initiative will also enhance transparency in the Cash Waterfall Mechanism, which ensures proper distribution of collected funds among sector beneficiaries.
At the signing, Ghana’s Finance Minister, Dr. Mohammed Amin Adam, emphasized the government’s commitment to overhauling the energy sector, pushing ECG to address electricity distribution losses and low collection rates that have cost the government $1.2 billion in 2024 alone. He stressed the importance of maintaining investor confidence and adhering to the cash management mechanism.
Deputy Energy Minister Collins Adomako-Mensah assured stakeholders of timely implementation, with a dedicated team monitoring progress. World Bank Country Director Dr. Robert Taliercio O’Brien and Energy Manager Asjish Khanna noted that funding would be tied to performance metrics, ensuring efficient allocation and results-driven disbursements, with a focus on reducing ECG’s fiscal losses and improving service delivery to Ghanaians.
